Canada Rare Earth Corp. seeks development site for rare earth refinery
Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V: LL) is pleased to announce the appointment of Mr. Nick Vermeulen to head Canada Rare Earth’s initiative to find and secure a suitable site in the United States that can be fully permitted for the construction and operation of a full spectrum (lights and heavies) rare earth refinery. In this role, Mr. Vermeulen will liaise with the local community officials, regulators and applicable government departments to ensure full support for the refinery development. CEC Rare Earth Corporation and its team will be responsible for raising finances as well as the design, construction and operation of the refinery.
Tracy A. Moore, CEO and President of Canada Rare Earth said, “We welcome Nick as a valuable member of our team which is working towards the successful execution of our strategic plan of vertical integration in the global rare earth industry. We are currently involved in assessing sites and opportunities in five international locations and this initiative will be the sixth. Over the past few months we have been developing the sourcing of concentrate and sales sides of our business strategy. We regularly interact with third party exploration projects with a view to assessing how their concentrate feeds might fit with the timing and scale of the refineries in our vision. We are in discussions with possible current sources of rare earth concentrate for delivery commencing in the next six months; and we have been pursuing joint venture partners to advance our own rare earth properties. On the sales front, we are continuing to develop our sales network and in particular we are in discussions with four rare earth refineries to serve as their agent – two operational refineries in China for immediate access to export quotas and for domestic China sales and two outside of China: one mechanically complete and one in the design and permitting phase. We are also in discussions with 15 prospective customers to build product specs into our refinery designs.”
Mr. Vermeulen has over 27 years of business development, sales and marketing, and real estate development experience. For the past five years Mr. Vermeulen has devoted the majority of his time to the rare earth industry, working with clients in the exploration phases with the goal of developing an entry point into the rare earth supply chain and in attracting customers for rare earths. Mr. Vermeulen brings a unique perspective by combining a geological and technical background with years of business and entrepreneurial experience. He has been consulting for many clients, and typically helps natural resource businesses and their value-chain partners to identify and respond to the needs of stakeholders. He holds a master of science degree in geology and business administration from the University of Utrecht, Netherlands.
Mr. Vermeulen said: “I am looking forward to working with Canada Rare Earth to bring together the numerous public and private stakeholders involved in developing a rare earth refinery. In my view, there is a strong need and desire to create a completely integrated rare earth metals company in North America. I view rare earth metals as a key component to the evolution of the clean-energy sector. Adding value to raw resources through separation, refining and ultimately manufacturing high-value products creates homegrown wealth. Canada Rare Earth is ideally positioned to act as an integrator in the field of rare earths. We are pursuing a strategy that brings together the exploration, mining, refining, manufacturing and clean-tech industries around a rare earth transformation centre that we are planning right here at home in North America.”
Compensation for Mr. Vermeulen includes a monthly retainer of $5,000 per month, and cash and option bonuses for the achievement of specific milestones within specified time frames, including facilitating an agreement to purchase a suitable rare earth refinery development site, arranging for local, state and federal government support, and obtaining permits for the authority to handle, transport and, if applicable, to store radioactive materials. The term of Mr. Vermeulen’s appointment is initially for three months and with the accomplishment of certain objectives within specified time frames the term will be extended for further periods of three months, then six months and then up to an additional three years. Subject to achieving specific contractual objectives Mr. Vermeulen will be eligible to earn cash bonuses during the entire potential four-year term of his contract totalling $305,000 and options to acquire one million shares at 10 cents per share, which will vest in proportion to the payment of the cash bonuses.
Peter Shearing, one of Canada Rare Earth’s directors, commented: “The engagement of Mr. Vermeulen is an important step in our vertical integration strategy and puts substance to the important North American component of our long-term strategy. A North American refinery will provide a source of the critical rare earth products to the growing United States manufacturing sector as well as contribute to global needs. The secure and stable environment of the United States will assure customers of access to the best quality of critical rare earths without needing to worry about the geopolitical risk presented by the present rare earth supply chain.”
There can be no assurance that a suitable site will become available on acceptable terms, including satisfactory price and the ability to obtain required licences and permits, and even if such site is secured there can be no assurance that sufficient funds can be raised for the completion of the refinery.
ABOUT RARE EARTH METALS
Rare Earth Metals Inc. has recently entered into an implementation agreement with CEC Rare Earth Corp. (“REC”) to assist the Company in developing a vertically integrated business within the global rare earth industry. The relationship with REC provides the Company with access to REC’s experienced personnel as well as its business model which includes the full spectrum of the rare earth industry including the designing, building and establishment of operations for rare earth refineries outside of China as well as the ongoing sales and marketing of refined rare earths. In addition to its relationship with REC the Company presently has several rare earth properties exhibiting multi-element potential (REEs, niobium, beryllium, zirconium and iron ore). Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company’s profile at www.sedar.com. For more information, please visit the Rare Earth Metals web site at www.rareearthmetals.ca
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:
“Tracy A. Moore”
CEO & President
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
For more information on the Company, investors should review the Company’s filings that are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Rare Earth Metals Inc.
Phone: (807) 623-6840
Fax: (807) 623-9526
Standard and Poor’s Customer Contact:
Standard and Poor’s Media Relations Contact:
Company information distributed through the Market Access Program is based upon information that Standard & Poor’s considers to be reliable, but neither Standard & Poor’s nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.